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ABSTRACT

This project (research) work is titled “Effect of Materials Management on resource utilization in Organization”. The researcher carried on investigation to determine the impact of effect of materials management on resource utilization in organization as it affect organization’s productivity and output in the field of resource control and management. The researcher went further to talk about the side effect of lack of adequate materials and resources used in industrial or manufacturing situation and the consequences it has placed the country at large. The researcher drew up questionnaire and administered them on forty six (46) staff of the company (Senior and junior staff). Only closed –ended questions were used in designing the questionnaire. Thus the questionnaire method was used in gathering the relevant data and information needed for the study. The researcher formulated hypothesis which comprises of Null hypothesis (HO) and hypothesis (Hi). The data used for the study were gathered and presented in tabular form using simple percentage method. Means while, the hypothesis formulated for the study were tested using chi-square (X2) distribution method. Finally, the researcher summaries the study, drew conclusion with respect to what has been discussed in the previous chapters and proffered recommendations among which state that, “management of an organization should be committed to their role and carry its people along.

TABLE OF CONTENT

CHAPTER ONE

Introduction

1.1 Background of the Study – – – – – 1-4

1.2 Statement of the Problems – – – – – 5

1.3 Objective of the Study – – – – – – 6

1.4 Statement of Hypothesis – – – – – 6

1.5 Significance of the Study – – – – – 7

1.6 Scope of the Study – – – – – – 8

1.8 Historical Background of the case Study – – – 8-9

1.9 Definition of Terms – – – – – – 10-12

CHAPTER TWO

LITERATURE REVIEW

2.1 Conceptual Definition of Material Management – 13

2.2 Meaning of Organization Resources – – — 14

2.3 The Significance of Materials Management – — 14-15

2.4 Functions of Materials Management – – — 16-26

2.5 Material Handling – – – – – – — 27-34

2.6 Materials Flow System – – – – – – – 34-36

2.7 Materials Management Strategies – – – – – 36-40

2.8 Determination of Materials Needs – – – – – 40-42

2.9 Definition of Production Control – – – – – 42-43

2.10 The Role of Production Control in Organization – – – 44-45

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design – – – – – – – – 46

3.2 Research Population – – – – – – – 46

3.3 Sample Size and Sampling Techniques – – – – 47

3.4 Method of Gathering Data – – – – – – 47

3.5 Justification for the Method Used – – – – – 47

3.6 Method of Data Analysis – – – – – – 48

3.7 Justification For the Instrument Used – – – – 48-49

CHAPTER FOUR: DATA PRESENTATION

4.1 Data presentation and analysis- – – – – – 49

4.2 Test of hypothesis – – – – – – – 56

CHAPTER FIVE –

SUMMARY OF FINDINGS, CONCLUSION RECOMMENDATION

5.1 Summary of finding – – – – – – – 60

5.2 Conclusion – – – – – – – – – 61

5.3 Recommendation – – – – – – – – 62

5.4 Limitation of the study – – – – – – – 64

References- – – – – – – – – 65

Appendices – – – – – – – – 67

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

This research work is titled the Effect of Materials Management on resource Utilization in Organization. A case study of 7up Bottling Company PLc Kaduna.

Arnold (1998) said that the wealth of any country is measured by its Gross National Product i.e the output of goods and services produced by the nation in a given time. He further defined materials as those physical objects i.e something we can touch, feel or see. Services are the performance of some useful function such as banking, medical care restaurants, clothing stores, or social services. But that the source of wealth of any country is measured by the amount of goods and services produced. A production process is needed to transform our resources into useful goods. Production takes place in all forms of transformation such as the transformation of resources to manufacture useful products.

There are many stages between the extraction of resource materials and the final consumer product. At each stage in the development of the final product, value is added. Thus, creating more wealth. Japan is a prime example of this, it has very few national resources and buys most of the raw materials it needs. However, the Japanese have developed one of the wealthiest economy in the world by transforming the raw materials they purchased and add value to them through manufacturing. To get value out of our resources, we must design production process that will make products most efficiently. Once the process exist, we need to manage their operation so they produce goods more economically. Managing the operation means planning for and controlling the resources used in the process such as labour, capital, equipment and materials. They are all important but the management plans through effective flow of materials. The flow of materials controls the performance of the process. if the right materials in the right quantity are not available at the right time, the profitability and even existence of a company, will be threatened.

Stevenson (1993) defined materials as all physical items used during production process. they includes not only the parts and raw materials that becomes the finished goods, but also the physical items needed to support the production process such as fuel, lubricants, tools, machinery, forms and anything else that is purchased, moved, stored or shipped.

Follet (2001) defined management as the act of getting things done through people by planning, organizing, directing, coordinating and controlling.

Stevenson (1993) defined materials management as the activity that is concerned with purchasing, storing, and movement of materials during production and with the distribution of finished goods.

George (1993) said that, materials management is an aspect of industrial management which is concerned with all activities that may include production control, inventory, purchasing, expenditure, traffic, materials handling, welfare, receiving, shopping, scrap and surplus, disposition and customer services.

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